LABH COMBINES PVT. LTD.,,KOLKATA vs. DCIT, CIRCLE 7(1),, KOLKATA

ITA 2382/KOL/2025Status: DisposedITAT Kolkata17 February 2026AY 2017-2018Bench: SHRI RAJESH KUMAR, ACCOUNTANT MEMBER SHRI PRADIP KUMAR CHOUBEY (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of assessment was based on information pertaining to a different financial year and assessment year, and that the AO had not applied his mind independently to the information received, thus committing a mistake repeatedly. The Tribunal cited several High Court judgments emphasizing the need for independent application of mind and tangible material for reopening.

What were the facts?

The assessee challenged the reopening of assessment for AY 2017-18, arguing it was based on incorrect information regarding unsecured loans from FY 2015-16, and that the AO did not apply his mind independently. The AO reopened the assessment based on information from the DDIT (Inv.) regarding accommodation entries and made an addition of Rs. 2,00,35,589/- as unexplained cash credit.

What were the issues?

Whether the reopening of assessment under Section 147 was valid when based on incorrect information pertaining to a different financial year and without independent application of mind by the AO.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 148,Section 139(1),Section 143(2),Section 142(1),Section 68,Section 132(4),Section 144B

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Income Tax Appellate Tribunal, “B” BENCH,KOLKATA

Per Rajesh Kumar, AM

The present appeal filed by the assessee arises from order dated 06.10.2025 passed u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as “the Ld.CIT(A)].

2.

The assessee has challenged the reopening of assessment u/s 147 of the Act by issuing notice u/s 148 of the Act on 30.03.2021 based on incorrect information received from the DDIT (In

The order continues below.

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